The smallest park I’ve owned is 15 lots and Dave’s is 10. That being said, the only reason we bought either one was price and terms. I bought my 15 space park for $60,000 with $5,000 down and the seller carried the paper. Normally, small parks are sold at crazy low prices and often with seller carry. They have to, because there are not a lot of buyers of for them. I sold that same park for $120,000 – which is not really that much for a park of that size (a mid-teens cap rate) but, again, there’s not that many buyers so you have to price them very effectively. But that equates to $60,000 profit on $5,000 down, which is really good. So the answer is that small parks are fine as long as you understand that they are very illiquid and hard to finance and you have to buy them extremely cheap to make any money.
I would stick with parks that are more like 25 lots and up for the following reasons: 1) that results in a finished product value of around $500,000, which allows for a decent base of buyers and lenders 2) gives you the scale you need to make decent money operationally (a $50 rent increase puts $15,000 in your pocket annually) and 3) it gives you the ability to get a decent on-site manager ($250 per month plus lot rent) who might actually do their job. In those tiny parks, you can only afford to give them lot rent and nothing more. The quality of what you get is pretty atrocious. My story of Denise, the manager who did not even know how to use a telephone (she was a hillbilly who had never seen one) stems from my 15 space park.
The moral on tiny parks (one more time): buy them EXTREMELY cheap and with seller financing. Otherwise, find something else.